Ford Fiesta appeals to more C-car owners, report says

Article by Christian Andrei, on March 10, 2011

Sales of the Ford Fiesta are growing as dealerships have reported that owners of larger vehicles have been trading in for this model. Jim Farley, group vice president-global marketing, said that the Fiesta is perceived by customers as a C-car and not as a B-car.

As a result, the interest of American consumers in small cars has been piqued due to the oil supply instability and price volatility at U.S. gasoline pumps from the political unrest in the Middle East.

The American Automobile Association said that the average per-gallon price of regular grade gas is $3.29, a $0.60 increase from the price a year ago of which 21.7%, or $0.13, accumulated just in the last week.

Farley said that many of the Fiesta buyers arrived in dealerships on their Toyota Corollas and Honda Civics, rivals of the Ford Focus C-car. He explained that Ford had found a lease point that was more competitive with Toyota and Honda.

Ford noticed that showroom traffic started to increase when they dropped lease prices to below $200 last December. Farley also noted that California consumers, specifically in L.A. and San Francisco, are warming to the Fiesta.

The Ford Fiesta is competing in the Lower Small market. In December, Ford’s share in the segment grew to 19% in December, adding three percentage points over the previous month. [via Ward's Auto]

Topics: ford, ford fiesta

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